ABRDN JAPAN EQUITY FUND, INC. (JEQ) ANNOUNCES FINAL RESULTS OF CASH TENDER OFFER

Rhea-AI Summary

abrdn Japan Equity Fund (NYSE: JEQ) has announced the completion of its cash tender offer for up to 7,072,985 shares, representing 50% of its outstanding shares. The tender offer, which expired on September 2, 2025, saw strong participation with approximately 11,116,238 shares (78.6%) properly tendered.

Due to oversubscription, the Fund implemented a proration ratio of approximately 0.6363. Accepted shares will be purchased at $8.04 per share, representing 98% of the Fund's NAV as of September 3, 2025. Payment is expected around September 12, 2025. Following the transaction, the Fund will have 7,072,985 shares outstanding.

Positive

• Strong shareholder participation with 78.6% of outstanding shares tendered
• Purchase price set at 98% of NAV, providing liquidity near fair value
• Significant tender size offering liquidity for 50% of outstanding shares

Negative

• Proration required due to oversubscription, limiting shareholders' ability to fully exit
• Reduction in fund size may impact trading liquidity for remaining shares

Insights

Closed-End Fund Specialist

JEQ's 50% tender offer was oversubscribed with 78.6% participation, resulting in 63.6% proration at $8.04 per share (98% of NAV).

The abrdn Japan Equity Fund's (JEQ) tender offer represents a significant capital action that materially affects shareholders. The fund purchased exactly 50% of its outstanding shares (7,072,985 shares) at $8.04 per share, representing 98% of NAV as of September 3rd. With 78.6% of all outstanding shares tendered, the offer was substantially oversubscribed, triggering a proration ratio of approximately 0.6363. This means shareholders who tendered received cash for only about 63.63% of their tendered shares, with the remainder returned to them.

This tender structure is noteworthy for three primary reasons. First, the pricing at a slight discount to NAV (2%) is more favorable than the typical market discount for closed-end funds, which often trade at deeper discounts. Second, the high participation rate suggests shareholders found the tender terms attractive. Third, this action dramatically reshapes the fund's capital structure, as it will have exactly half its previous share count following completion.

For shareholders who participated, this tender provided partial liquidity at a price better than recent market prices. For continuing shareholders, the tender could potentially help address discount issues, though this depends on post-tender market conditions. The process appears to have been executed according to standard tender procedures with payment expected by September 12th.

PHILADELPHIA, Sept. 5, 2025 /PRNewswire/ -- abrdn Japan Equity Fund, Inc. (NYSE: JEQ), announced today the final results of its cash tender for up to 7,072,985 shares, representing approximately 50% of the Fund's outstanding shares. The offer expired at 5:00 p.m. New York City time on September 2, 2025.

Based on information provided by Computershare Trust Company N.A., the depositary of the tender offer, approximately 11,116,238 shares of common stock or 78.6% of the Fund's outstanding stock were properly tendered, and the Fund has accepted, subject to adjustment for fractional shares, 7,072,985 shares for cash payment at a price equal to $8.04, which represents 98% of the Fund's net asset value per share ("NAV") as of the close of regular trading on the NYSE on September 3, 2025. Since the total number of shares tendered exceeded the number of shares the Fund offered to purchase, all tenders of shares were subject to proration (at a ratio of approximately 0.6363) in accordance with the terms of the tender offer. Following the purchase of the properly tendered shares, the Fund will have 7,072,985 outstanding shares. Payment of accepted shares is expected to be issued on or about September 12, 2025.

Important Information

The Fund's daily NYSE closing price and NAV, as well as other information, including updated portfolio statistics and performance are available at https://www.aberdeeninvestments.com/en-us/investor/funds/view-all-funds/ or by calling the Fund's Investor Services at 1-800-522-5465.

abrdn Inc. has prepared this report based on information sources believed to be accurate and reliable. However, neither the Fund, abrdn Asia Limited (the Investment Manager), nor any other person guarantees their accuracy. Investors should seek their own professional advice and should consider the investment objectives, risks, charges and expenses before acting on this information.

In the United States, Aberdeen Investments is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.

Closed-end funds are traded on the secondary market through one of the stock exchanges. A Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the NAV of the fund's portfolio. There is no assurance that a Fund will achieve its investment objective. Past performance does not guarantee future results.

Closed-End Funds | Aberdeen 

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SOURCE abrdn Japan Equity Fund, Inc.

FAQ

What was the final result of JEQ's tender offer in September 2025?

JEQ accepted 7,072,985 shares (50% of outstanding shares) at $8.04 per share, with a proration ratio of 0.6363 due to oversubscription.

How many shares were tendered in JEQ's 2025 tender offer?

Approximately 11,116,238 shares, representing 78.6% of JEQ's outstanding stock, were properly tendered in the offer.

When will JEQ shareholders receive payment for tendered shares?

Payment for accepted shares is expected to be issued on or about September 12, 2025.

What was the purchase price in JEQ's 2025 tender offer?

The purchase price was $8.04 per share, which represented 98% of the Fund's NAV as of September 3, 2025.

How many shares will JEQ have outstanding after the tender offer?

Following the purchase of tendered shares, JEQ will have 7,072,985 shares outstanding.